Land Trust — Illinois Recognized
Illinois recognizes land trusts. As the original land trust state, Illinois has the most established legal framework. Create a Land Trust →
Recognition Status
The original land trust state. Illinois land trusts are well-established with extensive case law. No specific enabling statute — based on common law and the Illinois Trust Code. Title companies and banks are familiar with the structure.
How Land Trusts Work in Illinois
A land trust in Illinois allows a trustee to hold legal title to real property while the beneficiary — the real owner — remains private. The beneficial interest is classified as personal property, which means it can be transferred by assignment without recording a deed.
Key features
- Privacy: The trustee's name appears on public records; the beneficiary's identity stays private
- Probate avoidance: Beneficial interest transfers by assignment, not through probate
- Beneficiary control: The trustee acts only on the beneficiary's written direction
- Personal property treatment: The beneficial interest is personal property, not real property
What You Need
A land trust requires two documents:
- Land Trust Agreement — the private, unrecorded contract between trustee and beneficiary. This is what FreeTrustDocs generates.
- Deed to Trustee — the recorded deed transferring legal title. You file this separately at your county recorder's office.
Trustee Requirements in Illinois
The trustee can be an individual or an entity (such as an LLC). For maximum privacy, the trustee should not be the beneficiary. Many people use a trusted third party or a professional trustee service. The trustee holds legal title but has no independent authority — they act only on the beneficiary's written direction.